Forex market reviews

U.S. stocks sought to rebound from two days of losses as the bear market in crude prices showed signs of spilling into the broader market even as oil stabilized. The dollar stayed lower as U.S. jobless claims came in slightly above expectations, while gold advanced.

Trading on the Forex market has been going relatively peacefully this Thursday. The EURUSD pair is trading in a 23-pip range with a median price of 1.1165 and the GBPUSD pair is trading within a 32-pip range with a median price of 1.2670. Given that there hasn’t been any significant data from Europe, the main driver of price changes has been the dynamics of US bonds. As of the time of writing, US 10Y bond yields have risen from 2.145% to 2.169%.

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After its growth yesterday, the bitcoin corrected downwards. Today, we’re seeing consolidation on the BTCUSD instrument in the region of 2620-2640. The driver for growth at the beginning of the week was the decision by India’s Inter-Disciplinary Committee to come up with a regulatory framework for the bitcoin market. A special team will be put together for the drafting of statutory acts. It’s perfectly possible that Delhi could legalise bitcoin within a matter of months. Cryptocurrencies are popular among Indians given the volatility of the rupee and the controversial monetary reforms of 2016. On Indian electronic platforms (Zebpay, Coinsecure and Unocoin), more than 10% of transactions are made in bitcoin and mining is becoming ever more popular.

The EURUSD pair closed up at the end of Wednesday’s trading. The price has returned below the trend line, which was broken through on the 20th of June. This was brought about by the impact of Andy Haldane’s speech, chief economist at the Bank of England, as well as by US bond yields and US data. The pair spent most of the day in a sideways trend, trading within a 30-pip range.

The pound jumped on Wednesday after a Bank of England policymaker said he expected to back an interest rate hike this year while commodity-linked currencies such as the Canadian dollar and Norwegian crown took a hit on declining oil prices.

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During trading in Europe, the British pound is once again the centre of attention due to increased volatility. The GBPUSD pair has fallen by 45 pips to 1.2590, hitting a new weekly low, from which it subsequently shot up by 113 pips to 1.2708. The Euro rate is being kept at 1.1147 level due to the EURGBP cross falling.

Trading on the Euro closed down on Tuesday. Before the US session, the pair was trading above the support zone of 1.1132/40. The EURGBP cross helped to counter the weakening of the Euro as it sharply rose on comments from Bank of England governor Mark Carney, who iterated that now is not the time to raise interest rates. The British pound has fallen by 155 pips to 1.2603.

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